Author: Martin Young, CoinTelegraph; Translated by: Deng Tong, Golden Finance
Matt Hougan, chief investment officer at Bitwise, said rising investment in “store of value” assets and continued debasement of fiat currencies could push the price of Bitcoin into six figures without the need for a dollar collapse.
In an Oct. 29 post to X, Hogan responded to a question he received from a financial advisor about whether Bitcoin could reach $200,000 without some kind of collapse of the U.S. currency. “When you invest in Bitcoin, you’re essentially making two bets at once,” Hogan said in a post in response to the question.
He said Bitcoin will successfully establish itself as the “new store of value asset,” while governments will continue to “abuse fiat currencies” — which will naturally lead to increased demand for hard assets like Bitcoin.
Hogan said that while there are two arguments that address the original question, they are two different viewpoints, each with its own potential price outcomes.
Bitcoin’s total market capitalization of $1.4 trillion is currently about 7-8% of gold’s $18 trillion market capitalization, but Hougan said Bitcoin could “mature” to be worth about half of the total value of gold, making one Bitcoin worth about $400,000.
He added that because governments are currently “abusing” control over fiat money supply through money printing, more investors will gravitate toward owning assets of value.
If Bitcoin only had a 7% share relative to gold and the demand for Bitcoin alone tripled, each BTC would be worth $200,000.
“The important thing is, these debates are complex. If Bitcoin matures and the store-of-value market doubles, you’ll be in seven figures very quickly,” he said.
“I think that’s ultimately the most likely scenario.”
Source: Matt Hogan
Gold prices hit a record high of $2,778 an ounce on Oct. 29 as demand for more traditional store-of-value assets surged amid rising global economic uncertainty and heightened geopolitical tensions in the Middle East.
In addition, according to an October 29 report by institutional investor news outlet Financial Sense, a continued depreciation of the U.S. dollar could become a core part of U.S. industrial policy.
Economists Mark Fastow and Ian Fletcher argue in the report that the United States needs a strong industrial policy to compete in the global economy, especially with China.
Such policies, they said, “should include supporting new technologies, preventing subsidized competition, and working together to reduce the value of the dollar.”
The purchasing power of the dollar has declined. Source: Visual Capitalist
Bitcoin was within striking distance of its March all-time high in late trading on Tuesday, Oct. 17, and is expected to reach new all-time highs in the coming weeks, according to several market commentators.
